Calabasas businesses will no longer have to pay county license fee





Calabasas officials have voted to rescind a little-known county business licensing fee that the city had forgotten about.

The annual savings to local businesses will be about $21,000 a year.

At a meeting June 11, City Council members said they were surprised to learn that businesses in the city were paying for a license issued by the county.

Former Councilmember Dennis Washburn said he had no idea the fee had been collected from certain businesses for the past 23 years.

It was never the city’s intention to charge for a business license, he said, urging officials to revoke the county requirement.

An oversight

When Calabasas was founded in 1991, the city adopted the L.A. County codes, which specified a license fee requirement for some businesses, including gas stations, valet and cab services, food processing facilities, gun dealers, places where people gather such as dance halls, and companies serving children such as private schools.

While the city has made many amendments to the codes over the past 20 years, the requirement for Calabasas companies to obtain a Los Angeles County business license remained, a city report said.

“This section somehow got overlooked. Because we do not administer the requirement and received no complaints, it slipped from view,” said Maureen Tamuri, community development director for Calabasas.

A recent review by city staff ssaid the city does not receive any notable benefits by participating in the county business license program, Tamuri said.

In Calabasas, the assessor’s office has identified 92 businesses that have been issued licenses.

The business licenses are separate from a requirement to obtain a public health permit, which is required in Calabasas for some businesses.

The purpose of the county license is mostly for public health, safety and nuisance issues, and to generate revenue for the city and county, Tamuri said.

“Annually your businesses pay over $21,000 for these licenses. The initial fee can be up to five times higher than the renewal fee,” she told the council.

In many cases, businesses have to obtain multiple licenses and permits to operate. The county business licenses must be renewed annually.

“The value to the city is really unclear. We’re not getting very much from this” Tamuri said.

Out of a total of 57 cities that contract with the county for support services, Calabasas is one of four that participate under the county’s business license provision. The others are Westlake Village, Malibu and Santa Clarita.

Agoura Hills recently rescinded its connection to the county business license, replacing it with an internally administered program that requires all businesses in the city to register and obtain a license.

Effective late September, businesses in Calabasas will no longer be required to have a Los Angeles County-issued business license.

“It’s clear that we should repeal this ordinance,” Councilmember Fred Gaines said.

Council members all said they were unaware of the county license requirement until recently.

“It’s a complete waste. It slipped under the radar,” Councilmember James Bozajian said.

Only apartment complex operators and businesses that sell tobacco are required to register with the city. That program is free.

The city requirement for a public health license will remain.

Later this summer, officials will consider whether they should establish a local registration program for all businesses.

That program would involve an administrative fee estimated at $20 or less. It would not be a regulatory program.



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